Insurance Coverage for Cyber Attacks

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There’s no denying that the present-day Internet, while extraordinary, is increasingly scary. Cyber attacks of various types continue to escalate across the globe. As stated by one recent commentator: “Cybercrime is raging worldwide.” Kevin Robinson-Avila, “Cyber attacks on the rise worldwide,” ABQJournal (Dec. 17, 2012). Reports of highprofile cyber attacks make headlines on an almost daily basis. In recent weeks and months, sophisticated distributed denial-of-service (“DDoS”) attacks on at least 26 of the largest U.S. banks reportedly breached some of the nation’s most advanced computer security, rendering bank websites unavailable to customers and disrupting transactions for hours at a time.

The headlines confirm the reality: Cyber attacks are on the rise with unprecedented frequency, sophistication and scale. And they are pervasive across industries and geographical boundaries.

Originally published in The Insurance Coverage Law Bulletin, Volume 12, Number 4 - May 2013.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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